Zacks Investment Research lowered shares of Devon Energy (NYSE:DVN) from a hold rating to a sell rating in a research report released on Tuesday.
According to Zacks, “In the last year, Devon Energy’s shares have declined more than the industry it belongs to.The highly competitive nature of the oil and gas industry has always been a headwind and limited control over some properties controlled by third parties could have an adverse impact on Devon’s performance. However, Devon’s diversified portfolio, focus on high margin production zones, cost savings and divestment of non-core assets are boosting its performance. Thanks to solid oil production and the performance of its domestic oil plays, the company is well poised to deliver a significant increase in U.S. oil production in 2018 from 2017 levels.”
Several other analysts have also weighed in on DVN. Capital One Financial lowered shares of Devon Energy from an overweight rating to an equal weight rating in a research note on Wednesday, January 10th. Piper Jaffray set a $44.00 price objective on shares of Devon Energy and gave the company a hold rating in a research note on Wednesday, March 14th. B. Riley set a $37.00 price objective on shares of Devon Energy and gave the company a hold rating in a research note on Friday, March 9th. KLR Group lowered shares of Devon Energy from a buy rating to a hold rating and set a $49.00 price objective for the company. in a research note on Tuesday, January 23rd. Finally, BMO Capital Markets reiterated a buy rating and issued a $50.00 price objective on shares of Devon Energy in a research note on Tuesday, February 27th. Two research analysts have rated the stock with a sell rating, six have given a hold rating and seventeen have given a buy rating to the stock. Devon Energy has a consensus rating of Buy and an average price target of $45.60.
Devon Energy (NYSE:DVN) last released its quarterly earnings data on Tuesday, February 20th. The energy company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.22). The company had revenue of $3.98 billion during the quarter, compared to the consensus estimate of $3.58 billion. Devon Energy had a net margin of 10.04% and a return on equity of 6.92%. The business’s revenue was up 41.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.25 EPS. analysts forecast that Devon Energy will post 1.52 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 29th. Shareholders of record on Friday, June 15th will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 1.02%. This is an increase from Devon Energy’s previous quarterly dividend of $0.06. The ex-dividend date of this dividend is Thursday, June 14th. Devon Energy’s payout ratio is currently 38.10%.
Devon Energy declared that its board has initiated a share buyback program on Wednesday, March 7th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the energy company to repurchase shares of its stock through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
A number of institutional investors and hedge funds have recently bought and sold shares of the business. Private Advisor Group LLC boosted its holdings in Devon Energy by 4.5% during the 3rd quarter. Private Advisor Group LLC now owns 29,484 shares of the energy company’s stock worth $1,059,000 after acquiring an additional 1,273 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. boosted its holdings in Devon Energy by 8.1% during the 3rd quarter. Ladenburg Thalmann Financial Services Inc. now owns 17,658 shares of the energy company’s stock worth $648,000 after acquiring an additional 1,329 shares during the last quarter. Crossmark Global Holdings Inc. boosted its holdings in Devon Energy by 2.4% during the 4th quarter. Crossmark Global Holdings Inc. now owns 56,676 shares of the energy company’s stock worth $2,346,000 after acquiring an additional 1,344 shares during the last quarter. Intrust Bank NA boosted its holdings in Devon Energy by 15.9% during the 4th quarter. Intrust Bank NA now owns 10,573 shares of the energy company’s stock worth $438,000 after acquiring an additional 1,451 shares during the last quarter. Finally, Hedeker Wealth LLC boosted its holdings in Devon Energy by 6.8% during the 4th quarter. Hedeker Wealth LLC now owns 23,082 shares of the energy company’s stock worth $955,000 after acquiring an additional 1,467 shares during the last quarter. 82.20% of the stock is currently owned by hedge funds and other institutional investors.
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Devon Energy Company Profile
Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States and Canada. It operates approximately 14,600 gross wells. The company also offers gathering, transmission, processing, storage, fractionation, and marketing to upstream oil and natural gas producers; and owns natural gas pipelines, plants and treatment facilities.
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